Gross remuneration is the total value of everything an employee earns in a pay period - basic salary, allowances, overtime, bonuses, commission and the taxable value of any fringe benefits - before any deduction is subtracted.
What it means
It is the single figure every statutory calculation starts from. PAYE is calculated on taxable income derived from gross remuneration, UIF and SDL are calculated on remuneration up to their respective limits, and it is the figure used to test thresholds like the National Minimum Wage or the BCEA earnings threshold.
Where it fits in
Payroll engines build gross remuneration up component by component each pay period, then work down to net pay by subtracting PAYE, UIF, and any other deductions (retirement contributions, garnishee orders, loan repayments). It is the figure reported, in aggregate, on the EMP201 and EMP501, and individually on the IRP5 and Return of Earnings.
Key rules
- Sum of all earnings components for the period - never reduced by any deduction.
- The base figure PAYE, UIF and SDL calculations all start from, even though each has its own thresholds and caps.
- Drives eligibility thresholds, such as BCEA earnings caps and ETI wage tests.
- Reported in aggregate to SARS and the Compensation Fund, and individually to the employee via the payslip and IRP5.
